Home buyers in limbo; await possession of residential units worth Rs 1 lakh cr

As many as 1.15 lakh home buyers are in a limbo across seven major cities as developers have failed to give possession of units estimated to be worth of Rs 1 lakh crore, property consultant Anarock said.

The consultant said that as many as 220 projects equalling 1.74 lakh homes are completely stalled in the top seven cities.

"Launched either in 2013 or before, these projects have absolutely no construction activity going on. The overall value of all stalled units is estimated to be more than INR 177,400 crore. Most of these projects have been grounded due to either liquidity issues or litigations," Anarock Chairman Anuj Puri said.

Almost 66 per cent of these stalled units (approx 1.15 lakh homes) have already been sold to buyers, he said, adding that the net estimated value of these sold units is about Rs 1,111 billion.

Puri said the Supreme Court's judgement on Amrapali Developers has rekindled the hopes of lakhs of homebuyers across cities who have waited futilely for delivery of their homes.

"While similar developments with regards to other stuck projects are awaited, SC has now set a precedent with a resounding message - comply or perish," he said.

The National Capital Region has the largest pile-up of stalled units with 1.18 lakh homes (68 per cent of the total stuck stock) spread over 67 projects with an overall value of Rs 822 billion. Of this, nearly 69 per cent (or 83,470 units) are already sold out.

The Mumbai Metropolitan Region follows next with nearly 38,060 units stalled across the city.